Mti Wireless Edge Share Discussion Threads

[russman] 11/7/2015 15:13

They are in the melting pot.

[sailing john] 10/7/2015 10:37

Moathunter - very wise deleting your post!!!

If you were referring to Faraday Research they are FCA Regulated.

[hezza123] 09/7/2015 12:58

Yes, I can't say I'll be subscribing to that tip service any time soon! Nice that other investors have hopped on board though, so hopefully the share price will move up towards a more realistic level.

[muffster] 09/7/2015 11:14

Large rise and spread nearly 9‰.

[sailing john] 09/7/2015 10:32

Hezza - Presumably, looking at volume as well as price movement.

Just checked LSE and apparently tipped in Microcap Confidential. I have never heard of them before. Subscription over £400/annum. Yikes!

Anyway I agree that these are undervalued it is just a case of waiting for the market to catch up with recent events. Results inc acquisition might help given that the cash pile has now been put to good use!

SJ

[gb904150] 09/7/2015 10:32

Not that I'm aware of, but it does seem to be getting chased higher.

The tick up yesterday was on very good volume and today it seems to be building in a similar fashion. Something must be afoot but I'm sure all will become clear in time.

As you say, rare for this share to be showing much action.

I still believe the acquisition was a very good piece of business.

[hezza123] 09/7/2015 10:15

Has MWE been tipped somewhere? I'm not used to seeing it jump up like this on two consecutive days!

[sladdjo] 12/6/2015 08:12

Just thinking about the amount of the loan ~ $2m to be repaid over 4 years, so ~ $500 repaid/year. Moni & Dov are probably confident that Mottech will achieve at least $500k op profs/year to cover that repayment and MWE will maintain ~ $4m cash on BS for opportunites/investment as and when they see fit.

Hopefully will achieve a higher op profit than that but we'll have to wait and see as always lots of variables with new acquisitions

[gb904150] 11/6/2015 13:00

I think it's a really good acquisition at a very good price.

That said, there's still lots to fix in the existing business so the new project must not distract from that.

[sailing john] 11/6/2015 08:54

Acquisition completed

Just need to see impact on accounts now

Will be a lot better than a stack of cash earning zero ish interest

SJ

[cjohn] 29/5/2015 11:34

They sell antennae to various armies.

[russman] 27/5/2015 21:40

I thought the Israeli Army was a big customer once.

[cjohn] 25/5/2015 10:49

Ok, thanks, that's very interesting detail. Good to know that the technology works.

I guess if one retailer adopts and there is an economic advantage, others will follow.

[sladdjo] 21/5/2015 08:58

Hi CJohn,

Agreed on the delays info.

W.r.t. checkout trails - I asked that question at the AGM and was told that customers still looking at it. They "haven't felt the pain" yet to make them start using the technology, which I believe meant that the costs saved aren't worthwhile for the supermarkets using it yet. Moni gave another example with supermarkets that Rfid antenna might help with, he said that Walmart has a load of milk in one part of the country that will pass its sell by date shortly, while in another part of the country they are short of milk. At the moment inventory is measured using bar-codes and is quite a labour intensive process. Ideally with Rfid it'd be automated and real-time and a note would get sent to their trucks to pickup the excess milk and ship it to stores that need it. However, as well as installing antennas and Rfid, likes of Walmart will have to upgrade their software backing the process, which I believe is the main issue holding the switch up at present. I think that’s why “they haven’t felt the pain” yet, though Dov seemed certain that it would happen sooner or later.

[cjohn] 18/5/2015 12:20

Hi Sladdjo,

You may remember the EGM we attended about 18 months ago. I'm wondering what happened to the antennae checkout trial with the leading retailer that Moni mentioned at the meeting. I've seen nothing about this subsequently, so I'm assuming the triai was a failure, or at least produced no purchase.

The ist quarter figures were reliably unexciting. Value here is in the assets.


It would be interesting to know WHY the cutomers were experiencing delays in implementing the back haul solutions that incorpórate MWE's 80ghz antennae.

[gb904150] 14/5/2015 13:18

Good summary sladdjo. As to janeann and 21trader asking why they trade so far below NBV...there's been no growth for a long time. MWE need to prove they can grow again and that the company has a strategy. I think Mottech will make a big difference. The existing business seems quite flat again.

In the meantime there's a decent divi to keep people happy-ish.

[sladdjo] 14/5/2015 09:53

Guess the discussion about 80GHz customers suffering delays in implementing solutions has scared people - that was supposed to be one of MWE's main growth areas so looks like may not progress as muhc as hoped in short term.

Revs $3.54m down slightly vs Q4 of ~ $3.68m, but gross margin was 35.8% vs 4Q's 33.7%, so starting to edge up again, and op profs of $141k ahead of 4Q's $123k. Allenby forecasts pre-Mottech acqn were for resv of $15.25m for the year at GM of 37% and op prof of $603k, so assuming split evenly over the 1/4's then should be ~ $3.8m revs with ~ $150k op prof/qtr. So comp seems in line with prof ests at least, hopefully there wont be too severe a slowdown in 80GHz orders and Mottech will soon start to contribute to profits.

[21trader] 14/5/2015 09:35

- Shareholder's equity of US$17.9m (at December 31 2014: US$17.9m), equivalent to 22.4 pence per share.

Nobody seems convinced today to buy any.

[janeann] 14/5/2015 09:34

what is wrong with this company..... share price falls below 10p and yet ..Shareholder's equity of US$17.9m (at December 31 2014: US$17.9m), equivalent to 22.4 pence per share

[cjohn] 13/5/2015 11:51

Hi GB 904150,

Thank you for your thoughts.

I hope what you say will be the case. More often than not, acquistiions destroy value, but on turnover grounds, it looks like they didn't over-pay.

[21trader] 07/5/2015 23:10

Bought in last week around 10.25p and tipped it on my twitter agree with your points the money was going nowhere so good they used it for a good acquisition.
If the merge works with usual costs savings and then growing profits
the shares will finally re-rate.

[gb904150] 07/5/2015 22:45

CJohn,

I visited the MWE AGM with sladdjo. My own feelings on the Mottech acquisition are that it's really positive.

MWE's big problem these last years has been costs that have crept up and lack of growth in revenues. Military and RFID are stable but not exciting and so the most likely area for any increase seems to be 80Ghz.

The jump from $1m to $2m revenues in the last year is pretty positive. I'd hope that to reach $3m in FY 2015. That range would then account for 20% of revenues.

I expect Mottech will take them to having $25m annualised revenues ($15m MWE + $10m Mottech) and $9m GP ($5m MWE + $4m Mottech).

All they then have to sort out is their expenses which are currently too high, but given that the 2 companies are so close it should be a straightforward exercise.

For years MWE investors have complained that cash on the balance sheet is a waste and isn't being put to work. This acquisition appears good value and looks to add to revenue and gross profits immediately. I think it will make MWE look very cheap.

MWE has needed to be reinvigorated, as these past several years they've been treading water. I think this acquisition does that and puts them in an exciting area (high tech irrigation) with a strong brand name (Motorola) and an existing, successful business.

Water conservation/optimisation is a huge investment area and products that are proven in Israel will have plenty of scope for use in other countries.

[cjohn] 07/5/2015 11:40

Ok, thanks for the detail.